However, traders are now pricing in a 65 per cent chance of a rate cut at next Tuesday’s RBA meeting, compared to a 60 per cent chance yesterday.

■ The S&P/ASX 200 is up 16.09 points, or 0.36 per cent, at 11.30am AEDT, with a relatively sharp and steady rise through the session.

Volume looks a little bit on the light side at this stage, but it’s a broad-looking rally with just one sector in negative territory. Consumer staples (0.80 per cent), consumer discretionary (0.58 per cent) and financials (0.47 per cent) are the best performers, while IT (-0.15 per cent), industrials (0.07 per cent) and healthcare (0.12 per cent) are weakest.

■ The Australian dollar has actually taken a dive following the stronger capex number - but it’s arguably consistent with a slightly higher chance of a rate cut next week - and was fetching $US1.0466 at 11.45am, down from the New York close of $US1.0477.

■ A mostly directionless day for bonds at the moment. The yield on the benchmark 10-year bond was down 0.1 basis points at 3.209 per cent and the yield on the 3-year bond was up 0.5 bips at 2.671 per cent.

■ Around Asia, Japan’s Nikkei was up 0.78 per cent and Korea’s Kospi was up 0.69 per cent.